Problem 16-31 (Algo) [LO 16-5, 16-9] In 2000, Ms. Ennis, a head of household, contributed $46,000 in exchange for 460 shares of Seta stock. Seta is a qualified small business. This year, Ms. Ennis sold all 460 shares for $90,000. Her only other investment income was an $7,900 long-term capital gain from the sale of land. Her taxable income before consideration of her two capital transactions is $557,000. Assume the taxable year is 2023. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends. Required: a. Compute Ms. Ennis's income tax and Medicare contribution tax for the year. b. How would the computation change if Ms. Ennis acquired the Seta stock in 2011 instead of 2000? c. How would the computation change if Ms. Ennis acquired the Seta stock in 2020 instead of 2000? Answer is not complete. Complete this question by entering your ans below. Required A Required B Required C Compute Ms. Ennis's income tax and Medicare cont year. Note: Round your intermediate calculations and fin nearest whole dollar amount. Taxable income Amount $ 586,900 Total income tax Medicare contribution tax Total tax $ 1,136 If taxable income is Not over $15,700 Head of Household Over $15,700 but not over $59,850 Over $59,850 but not over $95,350 Over $95,350 but not over $182,100 Over $182,100 but not over $231,250 Over $231,250 but not over $578,100 Over $578,100 The tax is 10% of taxable income $1,570.00+12% of excess over $15,700 $6,868.00+22% of excess over $59,850 $14,678.00+24% of excess over $95,350 $35,498.00+32% of excess over $182,100 $51,226.00+35% of excess over $231,250 $172,623.50+37% of excess over $578,100 Tax rates for capital gains and qualified dividends Rate 0%* 15%** Married Filing Jointly $0 - $89,250 20% $89,251 $553,850 $553.851+ Married Filing Separately $0 - $44,625 $44,626 $276,900 $276.901+ Single $0 $44,625 $44,626 $492,300 $492.301+ Head of Household $0-$59,750 $59,751 $523,050 $523.051+ * The highest income amount in this range for each filing status is referred to as maximum zero rate amount. ** The highest income amount in this range for each filing status is referred to as maximum 15-percent amount

Problem 16-31 (Algo) [LO 16-5, 16-9] In 2000, Ms. Ennis, a head of household, contributed $46,000 in exchange for 460 shares of Seta stock. Seta is a qualified small business. This year, Ms. Ennis sold all 460 shares for $90,000. Her only other investment income was an $7,900 long-term capital gain from the sale of land. Her taxable income before consideration of her two capital transactions is $557,000. Assume the taxable year is 2023. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends. Required: a. Compute Ms. Ennis's income tax and Medicare contribution tax for the year. b. How would the computation change if Ms. Ennis acquired the Seta stock in 2011 instead of 2000? c. How would the computation change if Ms. Ennis acquired the Seta stock in 2020 instead of 2000? Answer is not complete. Complete this question by entering your ans below. Required A Required B Required C Compute Ms. Ennis's income tax and Medicare cont year. Note: Round your intermediate calculations and fin nearest whole dollar amount. Taxable income Amount $ 586,900 Total income tax Medicare contribution tax Total tax $ 1,136 If taxable income is Not over $15,700 Head of Household Over $15,700 but not over $59,850 Over $59,850 but not over $95,350 Over $95,350 but not over $182,100 Over $182,100 but not over $231,250 Over $231,250 but not over $578,100 Over $578,100 The tax is 10% of taxable income $1,570.00+12% of excess over $15,700 $6,868.00+22% of excess over $59,850 $14,678.00+24% of excess over $95,350 $35,498.00+32% of excess over $182,100 $51,226.00+35% of excess over $231,250 $172,623.50+37% of excess over $578,100 Tax rates for capital gains and qualified dividends Rate 0%* 15%** Married Filing Jointly $0 - $89,250 20% $89,251 $553,850 $553.851+ Married Filing Separately $0 - $44,625 $44,626 $276,900 $276.901+ Single $0 $44,625 $44,626 $492,300 $492.301+ Head of Household $0-$59,750 $59,751 $523,050 $523.051+ * The highest income amount in this range for each filing status is referred to as maximum zero rate amount. ** The highest income amount in this range for each filing status is referred to as maximum 15-percent amount

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter11: Invest Or Losses

Section: Chapter Questions

Problem 64P

See similar textbooks